Playtika (PLTK) Q4 2023 earnings summary

Executive summary

• FY23 revenue was $2,567.0M, down 1.9% YoY; net income was $235.0M, down 14.6%; Credit Adjusted EBITDA was $832.2M, up 3.4%; free cash flow was $436.4M, up 13.7%.

• Q4 revenue was $637.9M, up 1.1% YoY, while net income fell 57.4% to $37.3M and Credit Adjusted EBITDA declined 6.8% to $188.9M.

• Focus shifted toward reinvestment and M&A after efficiency initiatives; strategic alternatives evaluation was paused amid uncertainty in Israel and Ukraine.

Financial highlights

• FY23 revenue was $2,567.0M versus $2,615.5M; net income was $235.0M versus $275.3M, and EPS was $0.64 versus $0.69.

• FY23 Credit Adjusted EBITDA was $832.2M versus $805.1M; free cash flow was $436.4M versus $383.7M.

• Q4 revenue was $637.9M, up 1.1% YoY and 1.2% QoQ; operating income was $120.0M versus $128.3M, and net income was $37.3M versus $87.5M.

• Q4 Credit Adjusted EBITDA was $188.9M versus $202.6M; cash and cash equivalents totaled $1,029.7M at Dec. 31, 2023.

Outlook and guidance

• FY24 revenue guidance: $2,520M–$2,620M; Credit Adjusted EBITDA: $730M–$770M; Credit Adjusted EBITDA margin: 29.0%–29.4%.

• FY24 capital expenditure guidance: $110M–$115M, including $17M accrued for Q4 2023 property and equipment payable in FY24.